"I do not have that much water."
Translation:Ik heb niet zoveel water.
No, you can't. "Zoveel" is one of a handful of adjectives that is always negated with "niet" in front. In essence, these adjectives replace the indefinite article "een" (or no article, in case of plural or uncountable nouns). So for the negation, instead of using "geen" instead of "een", you use "niet" + adjective.
Other adjectives like that are: elk, ieder, genoeg, veel, weinig, zulk and zo'n. Some examples:
"Ik heb geen water" - "I have no water" (no adjective, uses "geen")
"Ik heb niet veel water" - "I have not much water"
"Ik heb niet zo'n honger" - "I am not so hungry"
"Er is niet genoeg eten" - "There is not enough food"
"Niet iedere appel is hetzelfde" - "Not every apple is the same"
I think "Ik heb zoveel water NIET." is also correct in grammarly but wrong as a translation.
It negates "that much water" and means I not only don't have that much water, but also don't have even one drop of water.
It has the same meaning of "Ik heb geen water." and very redundant.
"Ik heb NIET zoveel water. " negates "that much" and means I have some water but don't have that much.
This one fits the mearning of the English version.
If we place niet before TIME, PLACE, MANNER, or the direct object, we do this to stress that it was not yesterday (but today), that it was not in Amsterdam (but in Den Haag), that we did not do it together (but alone), that we did not give her flowers (but chocolate), etc.
As we know, zoveel describes "To what degree?" so it is a MANNER, we do this to stress that it was not so much (but a little).